Red Sale Sign: The Psychology of Color in Retail Industry

The psychology of color in human beings is a subject of’ research and ‘has been under study for long periods. The color scheme that is selected by the retailers for decoration, the design of the logo, content on the website and mobile applications etc. can have a direct impact on the sales.

Importance of Color

According to a research, the first impression of the customers plays a significant role in retail and 62% to 90% of it is based on color. Aesthetic appeal is of utmost importance for the shoppers and 52% do not return to the store if they dislike the aesthetics. The primary and deciding factor for 85% of the shoppers while making a purchase is the color. Signage is also an important factor for retail and it is often observed that the ads and banners are designed using red as the primary color.

Retail Signage

Color Schemes

There are various color schemes that the retailers may use in their store and on the web applications. Some of these color schemes are as listed below.

  • Monochromatic Colors: Varied tones of a single color are used under this scheme.
  • Complementary Colors: The opposing colors on the color wheel are used in this scheme.
  • Analogous Colors: The colors that are placed at left or right of a color on the color wheel are used.
  • Triadic Colors: The colors placed at 120 degrees apart on the color wheel are used as per this scheme.  
  • Split-Complementary Colors: A color is selected as a base color and two colors that are adjacent to the complementary colors are used.
  • Rectangular Colors: Pairs of two complementary colors on the color wheel are used.  
  • Square Colors: Four colors placed evenly on the color wheel are used.

There are also combining color schemes that are often used by the retailers in order to enhance the visual appeal and attract an increased number of buyers.

Influence of Color

Color is a critical variable that has the power to impact the psychology of a human at conscious and subconscious level.

The colors can be used in the following ways to have a positive and appealing influence on the customers.

  • The retailers shall select an effective theme for their store and shall then decide upon the colors to explain the concept to the buyers.
  • There are certain colors, such as green and blue that may have a calming effect on the shoppers while orange and brown can have a reassuring impact.
  • The retailers must understand the ability to alert and appeal their buyers through the use of adequate colors. The use of bright colors like red and yellow can grab the customer attention.
  • Brand recognition can be enhanced by 80% with the correct use of colors. Logo colors and color scheme should be intelligently selected.
  • The category of product and the choice of color shall go hand in hand. For instance, the sleek look of an electronic product may vanish with the use of bold and bright colors.

Retail Industry

Consumer Reaction to Red Color

Red is a color that is usually associated with love and power. The color also has the ability to enhance the heart rate and also activates the pituitary gland. The use of red color in the retail stores visually appeals the buyers and grabs their attention.

A majority of retailer use red as the color for sales signs and for displaying other significant details. It is because more value is added to the aesthetics and it can be easily read from a distance.

A research was carried out to understand the importance of the color in a better manner. A male model was selected as the communicator and was asked to pose for two different pictures wearing a red sweater in one and white sweater in the other. Persuasive arguments were used to understand the color psychology of 94 undergraduate students and the picture with red sweater was rated more persuasive.

The use of web and mobile applications has increased in the recent years and the color of the website or application logo along with the choice of text color shall also be judiciously picked up. The online shoppers make their purchasing decisions largely on the basis of the color scheme used.

Technology plays a crucial role in the retail industry, and partnering with a software development company is key to unlocking its full potential. By leveraging innovative software solutions, retailers can enhance customer experiences, optimize operations, and make data-driven decisions to stay competitive in the market.

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    About the Author

    Tony Joseph

    Tony believes in building technology around processes, rather than building processes around technology. He specializes in custom software development, especially in analyzing processes, refining it and then building technology around it.He works with clients on a daily basis to understand and analyze their operational structure, discover (and not invent) key improvement areas and come up with technology solutions to deliver an efficient process.

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